Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
3 l) P; J' |& B% S2 \2 Cthese oil producer will go bankrupt or out of the business even if
crude prices improves. This implies also to good names such as Shell,
- ^) O' w% M+ t, d, YEXXON, BG, BP, Cheveron ....xyz.. oils

/ p+ b* ~& P) K1 A6 k, c2 i; J0 GRecently OPEC reduced crude oil production twice over just a few
$ Q+ b0 z, N5 Ymonths. There are three wars going on in Gaza, Iraq and Afghandistan.
A year ago these things would have spiked the price of crude oil by at
3 O2 E( l1 s6 I$ `) B5 Eleast $50.00 per barrel. Today, oil price declined by a record amount.
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There are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:


5 q$ ]7 |4 e0 _* V) L, v0 I1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
Arabia.

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) J# _$ q! A' h. G6 f- Z2. New natural gas has been found in Pennsylvania and West Virginia.
( W2 }3 ?: G4 _This is the largest find in North America.

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7 f& @5 u8 g; F/ _3. New methods of injecting CO2 and surfactants into oil wells is
. m6 p9 g. S1 h% z, W( k: ]being used to double their output.

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4. Production of bio-fuels is beginning to reach critical mass. Bio
# L* b* ~+ P+ U! dfuel is being produced from many plants and algae. The production
7 a8 L! [8 P8 j1 G. Dpotential per acre in some cases is astounding. Many countries are
% I7 Y  ?) X: ~* E8 I5 [racing to produce bio fuels.
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5. Virtually every restaurant in the US and all food processing plants
) P# L/ }7 m' Y7 {# ~are now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
: N$ O' ^* Y1 `7 b) P: v; bto bio-diesel producers. One pork processing plant in Oklahoma is
7 k3 b3 n/ S/ L- xproducing 30,000 gallons of bio-diesel per day from pork fat.

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6. There are 99 nuclear reactors in various stages of planning and
% Z$ d7 L" l3 n  Y/ B- ~8 v* Rconstruction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
! s) c8 c" e6 H! q& ?  M, pwill replace oil.
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! i6 j  j% h  R" l! L/ Y7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
# u3 y1 O; o- w* T2 awith new more fuel efficient equipment. Airlines and railway companies
) `( Z) l9 y. E9 A2 Dare experiencing 20% to 25% better fuel econony with the new
' n- ]. X& w: F3 X+ oequipment.
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" Z" O+ E( t: T2 q- wAirlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.
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6 U4 [0 r. Z' A& K% ~( s9 `8 b8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
( T" |5 V/ j6 R6 [, P$ h+ V4 M, xavailable at very little cost or risk. The gas is displacing crude
7 D# T3 y1 {! ]; T6 |oil.
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9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
* J. S6 d2 j) f( @5 Ooil wells.


, `8 ~# p: R& z6 F- h10. Solar, wind and ocean energy is displacing oil as an energy
9 Q# d6 ?! l# I( @1 F" |source. Three new wind turbines are being erected every day in the US.

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Each of the above by itself will not make a large difference in the
price of crude oil but the sum of all of them together is world
4 x9 Y7 B. H) w1 A' Q3 Achanging. The important thing is that OPEC no longer has the ability
to control oil prices.


With the above scenario, I still believe that there are under
  |( i% Q6 H1 ]* ]7 r; p! \performed OIL companies and probably they are yet to get the justified
value .....
) T( }% q) ]" h  cIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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  e0 O3 Z0 [+ OThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
, [+ J1 W! b- E$ h. a2009 ... FYI-Only